System and method for scheduling asset allocation

ABSTRACT

A distributed asset allocation processing system performs a computerized method for allocating subscriber assets. The system configures predetermined investment allocation paths that relate asset allocation models to trigger events. The system then selects a predetermined path based on a subscriber&#39;s risk tolerance. At each trigger event along the predetermined path, the system automatically rebalances the subscriber&#39;s assets according to an asset allocation model corresponding to the trigger event.

FIELD OF THE INVENTION

The present invention relates to a system and method for automaticallydistributing assets and, more particularly, to automatically rebalancingassets in accordance with a predetermined investment allocation path.

BACKGROUND OF THE INVENTION

Investors increasingly seek effective management of their financialassets. In response to this growing demand for asset management, variousmethods have been proposed for developing and implementing assetallocation.

Many assets are invested according to various AAMs, or asset allocationmodels. An asset allocation model is the term commonly used in the artof financial management to describe diversification of a subscriber'sassets among a portfolio of investment options with varying rates ofreturn and risks of loss. Typically, asset allocation models aredesigned to correlate to a subscriber's risk tolerance.

Asset allocation models are used in retirement plans for investing asubscriber's assets. As the subscriber progresses toward retirement, ittypically is desirable to adjust the asset allocation model so as toreduce the exposure of accumulated assets to the risk of loss. However,it is well known that subscribers typically fail to shift their assetallocation models with appropriate periodicity. In fact, manysubscribers fail to shift their asset allocation models at all. Thus,large quantities of subscriber assets are not optimally managed,resulting in financial losses to individual subscribers.

Accordingly, there is a need for improved systems and methods ofautomated financial asset management.

BRIEF SUMMARY OF THE INVENTION

According to the present invention, a distributed asset allocationprocessing system includes a data storage device for storing dataindicative of a subscriber risk tolerance, data indicative of aplurality of predetermined investment allocation paths, data indicativeof a plurality of trigger events, and data indicative of a plurality ofasset allocation models corresponding to each of the trigger eventsalong the predetermined investment allocation paths. The distributedasset allocation processing system also includes a server coupled to thedata storage device to retrieve the subscriber risk tolerance and toselect a predetermined investment allocation path based on thesubscriber risk tolerance, wherein the server allows the subscriber toswitch between the plurality of predetermined investment allocationpaths at a branch point.

According to an embodiment of the present invention, the server performsa computerized method for allocating a subscriber's assets. The serverfirst configures data indicative of a plurality of predeterminedinvestment allocation paths. Each path has data indicative of aplurality of asset allocation models having varied investment profiles.The path is based on a series of several trigger events, and each assetallocation model along the path corresponds to a trigger event. Theserver then receives and stores data indicative of an initial risktolerance associated with the subscriber. Based on the initial risktolerance, the server selects an appropriate predetermined path. At eachtrigger event along the predetermined path, the server then directsinvestment of the subscriber's assets according to the correspondingasset allocation model.

According to a feature of the present invention, before each triggerevent, the server directs delivery to the subscriber of a notificationdescribing the trigger event, the corresponding asset allocation model,and the predetermined path. The notification also explains variousresponses that the subscriber may make. The subscriber may direct theserver to continue investing the subscriber's assets according to thepredetermined path. Alternatively, the subscriber may direct the serverto switch the subscriber's assets to an alternate predetermined path.

According to another feature of the present invention, the server alsomay schedule pre-scheduled transactions based on instructions providedby the subscriber. The pre-scheduled transactions may include increasesor decreases of the subscriber's investment contributions, or otherfinancial transactions such as asset transfers.

By investing assets according to the predetermined path, the subscribermay attain a reasonable likelihood of success in his or her goal ofaccumulating sufficient assets to fund retirement expenses. According tothe present invention, the subscriber knows at the outset the details ofthe path to retirement, and those details are in accord with thesubscriber's initial risk tolerance as well as future values of thesubscriber's risk tolerance extrapolated from the initial risk toleranceas a function of the subscriber's future age.

These and other objects, features and advantages of the presentinvention will become apparent in light of the detailed description ofthe best mode embodiment thereof, as illustrated in the accompanyingdrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram of a distributed asset allocationprocessing system in accordance with an embodiment of the presentinvention;

FIG. 2 is a schematic diagram of the distributed asset allocationprocessing system in accordance with an alternate embodiment of thepresent invention;

FIG. 3 is a flow chart of a computerized method for allocating asubscriber's assets, as performed by the system of FIG. 1 or FIG. 2 inaccordance with an embodiment of the present invention;

FIG. 4 is a table of a plurality of predetermined paths and a pluralityof trigger events, as configured by the computerized method of FIG. 3 inaccordance with an embodiment of the present invention;

FIG. 5 is a plurality of pie charts illustrating a plurality of assetallocation models, corresponding to the predetermined paths and thetrigger events of FIG. 4 in accordance with an embodiment of the presentinvention;

FIG. 6 is a flow chart of the computerized method of FIG. 3, furthercomprising steps for delivering a notification to the subscriber, inaccordance with another embodiment of the present invention;

FIG. 7 is a flow chart of the computerized method of FIG. 3, furthercomprising steps for scheduling and performing pre-scheduledtransactions, in accordance with another embodiment of the presentinvention; and

FIG. 8 is a table of a custom predetermined path, as configured by thecomputerized method of FIG. 7 in accordance with an embodiment of thepresent invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Referring to FIG. 1, the present invention relates to a distributedasset allocation processing system 10, which includes at least onecentral processing computer or computer network server 12. Computernetwork server 12 includes at least one controller or central processingunit (CPU) 14, at least one communication port 16, at least one randomaccess memory (RAM) 18, at least one read only memory (ROM) 20 and oneor more data storage devices 22. All of these later elements are incommunication with the CPU 14 to facilitate the operation of the networkserver 12. The network server 12 may be configured in many differentways. For example, network server 12 may be a conventional standaloneserver computer, as shown in FIG. 1, or the function of server 12 may bedistributed across multiple computing systems and architectures, asshown in FIG. 2.

Referring to FIG. 2, wherein like reference numbers refer to likecomponents from FIG. 1, network server 12 may also be configured in adistributed architecture 110, wherein data storage devices 22 andprocessors 14 are housed in separate units or locations. Some suchservers perform primary processing functions and contain, at a minimum,a random access memory (RAM) 18, a read only memory (ROM) 20, and ageneral controller or processor 14. In such an embodiment, each of theseservers 12 is attached to a communications hub or port 116 that servesas a primary communication link with other servers, client or usercomputers 24 and other related devices. The communications hub or port116 may have minimal processing capability itself, serving primarily asa communications router. A variety of communications protocols may bepart of the system, including but not limited to: Ethernet, SAP,SAS.TM., ATP, Bluetooth, and TCP/IP.

The server 12 is configured to perform a computerized method 40 forallocating financial assets related to a subscriber, as shown in FIG. 3.Referring back to FIG. 1, the network server 12 comprises a processor14, such as one or more conventional microprocessors and one or moresupplementary co-processors such as math co-processors. In performingthe computerized method 40, the processor 14 will need to communicatewith external devices such as other servers, user terminals 24, or otherdevices. Accordingly, the processor 14 is in communication with thecommunication port 16. Communication port 16 may include multiplecommunication channels for simultaneous communication with, for example,other processors, servers or client terminals 24. Devices incommunication with each other need not be continually transmitting toeach other. On the contrary, such devices need only transmit to eachother as necessary, may actually refrain from exchanging data most ofthe time, and may require several steps to be performed to establish acommunication link between the devices. For example, the communicationport 16 may include wire modems, wireless radio, infrared, visiblelaser, or UV laser transceivers, or audio transceivers.

The processor 14 also is in communication with a data storage device 22.The data storage device 22 may comprise an appropriate combination ofmagnetic, optical and /or semiconductor or flash memory, and mayinclude, for example, RAM, ROM, an optical disc such as a compact discand /or a hard disk or drive. The processor 14 and the data storagedevice 22 each may be, for example, located entirely within a singlecomputer or other computing device; or connected to each other by acommunication medium, such as a USB port, serial port cable, a coaxialcable, a Ethernet type cable, a telephone line, a radio frequencytransceiver or other similar wireless or wireline medium.

The data storage device 22 of the system 10 may be configured to store,for example, (i) a program and/or algorithm(s) 26 (e.g., computerprogram code and/or a computer program product) adapted to configure theprocessor 14 of server 12 to perform the computerized method 40 forallocating financial assets related to a subscriber, as described indetail hereinafter; (ii) at least one database 28 configured to storeinformation required, manipulated, or produced by the processor 14 ofthe server 12 according to the computerized method 40 of the program 26.The database 28 may include multiple records, each record includingfields specific to the present invention such as subscriber identities,subscriber risk tolerances, predetermined investment allocation paths,asset allocation models, trigger events, as will be discussed below.

The program 26 may be stored, for example, in a compressed, anuncompiled and/or an encrypted format, and may include computer programcode. The instructions of the program may be read into the RAM 18 of theprocessor 14 from the data storage device 22. While execution ofsequences of instructions in the program 26 will cause the processor toperform the steps of the computerized method 40 as described below,hard-wired circuitry may be used in place of, or in combination with,software instructions for implementation of the computerized method 40.Thus, embodiments of the present invention are not limited to anyspecific combination of hardware and software.

Suitable computer program code may be provided for performing numerousother functions such as notifying the client at selected intervals. Thecomputer program code required to implement the above functions (and theother functions described herein) can be developed by a person ofordinary skill in the art, and is not described in detail herein.

Alternatively, as shown in FIG. 2, the program 26 may be embodied inanother computer-readable medium that provides or participates inproviding instructions to the processor 14 of the server 12 (or anyother processor of a computing device described herein) for execution.The computer-readable medium may take many forms, including but notlimited to, non-volatile media, volatile media, and transmission media.Non-volatile media include, for example, optical or magnetic disks, suchas memory. Volatile media include dynamic random access memory (DRAM),which typically constitutes the main memory. Transmission media includecoaxial cables, copper wire and fiber optics, including the wires thatcomprise a system bus coupled to the processor. Transmission media maycarry acoustic or light waves, such as those generated during radiofrequency (RF) and infrared (IR) data communications. Common forms ofcomputer-readable media include, for example, a floppy disk, a flexibledisk, hard disk, magnetic tape, any other magnetic medium, a CD-ROM,DVD, any other optical medium, punch cards, paper tape, any otherphysical medium with patterns of holes, a RAM, a PROM, an EPROM orEEPROM (electronically erasable programmable read-only memory), aFLASH-EEPROM, any other memory chip or cartridge, a carrier wave asdescribed hereinafter, or any other medium from which a computer canread.

Various forms of the computer-readable medium may be involved inconfiguring the processor 14 (or any other processor of a devicedescribed herein) to perform the computerized method 40. For example, asshown in FIG. 2, the instructions may initially be borne on a magneticdisk of a remote computer 31. The remote computer 31 can load theinstructions into its dynamic memory and send the instructions over atelephone line 34 using a first modem 33. A second modem 35 local to acomputing device (e.g., the server 12) can receive the data on thetelephone line 34 and use an infrared transmitter 36 to convert the datato a wireless signal 37. An infrared detector 38 can receive the datacarried in the wireless signal 37 and place the data on a system bus 39for the processor 14. The system bus 39 carries the data to RAM 18, fromwhich the processor 14 retrieves and executes the instructions. Theinstructions received by RAM 18 may optionally be stored in memoryeither before or after execution by the processor 14. In addition,instructions may be received via the communication port 16 aselectrical, electromagnetic or optical signals, which are exemplaryforms of wireless carrier waves that carry data streams representingvarious types of information.

The user device or computer 24 may include any one or a combination of akeyboard, a computer display, a touch screen, LCD, voice recognitionsoftware, an optical or magnetic read head, or other input/outputdevices required to implement the above functionality. The program 26also may include program elements such as an operating system, adatabase management system and “device drivers” that allow the processorto interface with computer peripheral devices (e.g., a video display, akeyboard, a computer mouse).

Referring to FIG. 3, the server 12 of the system 10 is configured toperform the computerized method 40 for allocating financial assetsrelated to a subscriber, for example, a retirement plan subscriber. Thecomputerized method 40 includes a step 42 of configuring data indicativeof a plurality of predetermined investment allocation paths 44 in theprocessor 14 of the server 12, as shown in FIGS. 1-3.

Referring to FIG. 4, each of the plurality of predetermined investmentallocation paths 44 a-44 i includes a plurality of asset allocationmodels 48 a-48 e. Each asset allocation model corresponds to one of aplurality of trigger events 50 a-50 e along each of the predeterminedpaths 44 a-44 i. Each asset allocation model 48 has a varied investmentprofile, as shown in FIG. 5. Once a predetermined investment allocationpath 44 has been selected for the subscriber's assets, as discussedbelow, the subscriber's assets will be automatically rebalanced from oneasset allocation model to another asset allocation model in accordancewith the predetermined investment allocation path 44 at thecorresponding trigger event 50.

As shown in FIG. 5, the plurality of asset allocation models may includefive (5) distinct asset allocation models 48 a to 48 e, each having avaried investment profile that corresponds to a particular level ofinvestment risk. Although an exemplary number of asset allocation modelsis shown and described, the scope of the present invention is notlimited to any particular number of asset allocation models. Theinvestment profiles include a varied distribution of assets amongforeign equities, foreign or domestic bonds, large, medium, or smalldomestic growth or value equities, or cash equivalents, depending on thesubscriber's investment risk tolerance. Methods for establishinginvestment profiles are well known in the art.

The predetermined investment allocation paths 44 a-44 i, the pluralityof asset allocation models 48 a-48 e, and the plurality of triggerevents 50 a-50 e may be stored by the server 12 in the database 28 onthe data storage device 22, as shown in FIGS. 1 and 3. The server 12 mayalso be configured to retrieve from the database 28 the predeterminedinvestment allocation paths 44 a-44 i, the asset allocation models 48a-48 e, and the trigger events 50 a-50 e.

Referring back to FIG. 3, the computerized method 40 also includes astep 51 of receiving, at the server 12, data 49 indicative of a risktolerance 52 associated with the subscriber. Such data may include, butis not limited to, any of the following: the subscriber's age, financialassets, earning capacity, educational level, attitudinal questionnaireresponses, fixed or discretionary expenses, savings rate, or financialgoals. Persons of skill in the art know various methods for determiningthe risk tolerance 52 based on the data 49. In a preferred embodiment,each of the predetermined investment allocation paths 44 a-44 i isconfigured based on the initial value of the risk tolerance 52 and byextrapolating future values of the risk tolerance 52 as a function ofthe subscriber's age corresponding to each of the plurality of triggerevents 50 a-50 e.

As shown in FIG. 4, the trigger events 50 may correspond to thesubscriber's birthdays. For example, a trigger event 50 a may correspondto the subscriber's 31st birthday; a trigger event 50 c may correspondto the subscriber's 51st birthday; and a trigger event 50 e maycorrespond to the subscriber's 66th birthday. The plurality of triggerevents 50 alternatively may be based on subscriber life events such asretirement, or education-related expenses such as college attendance bythe subscriber's children. The plurality of trigger events 50 also maybe based on financial events such as home purchase or sale, completionof mortgage or other loan payments, and other major expenses or changesin cash flow. In an embodiment of the present invention, the server 12may receive a list of custom trigger events based on the subscriber'sindividual financial needs and strategy. For example, the subscriber maydesign their custom trigger events based on a combination of birthdays,educational events, and planned financial events.

The computerized method 40 further includes a step 53 of storing thedata 49 in the database 28 of the data storage device 22, which is incommunication with the server 12, as shown in FIGS. 1-3.

As shown in FIG. 3, the computerized method 40 also includes a step 54of processing the data 49 or the risk tolerance 52 in the server 12 toselect, from the plurality of predetermined investment allocation paths44, a predetermined path for the subscriber's assets.

As shown in FIG. 4, the plurality of predetermined investment allocationpaths 44 may include nine (9) distinct predetermined investmentallocation paths 44 a through 44 i. Although an exemplary number ofpredetermined investment allocation paths is shown and described, thescope of the present invention is not limited to any particular numberof predetermined investment allocation paths. As an example, for data 49indicating a low value of risk tolerance 52 related to a firstsubscriber, predetermined path 44 a would be selected for the firstsubscriber's assets. Predetermined path 44 a indicates a progression ofrelatively conservative or risk-averse asset allocation modelscorresponding to each of the plurality of trigger events 50. At thetrigger event 50 a corresponding to the first subscriber's 31stbirthday, the predetermined path 44 a indicates the asset allocationmodel 48 c.

As shown in FIG. 5, the asset allocation model 48 c provides a“moderate” investment profile with eighteen percent (18%) of assetsinvested in intermediate term bonds (IB), ten percent (10%) of assetsinvested in international bonds (IntB), and twenty percent (20%) ofassets invested in large value equities (LV). The remaining fifty twopercent (52%) of the asset allocation model 48 c includes an essentiallybalanced mixture of small, medium, and large growth and value equitieswith exposure to growth equities (SG, MG, LG) and international equities(IntE) hedged by medium and small value equities (MV, SV) and by shortterm domestic bonds (STB). Thus, on the first subscriber's 31stbirthday, the first subscriber's assets will be balanced according tothe asset allocation model 48 c. The first subscriber's assets will beinvested according to the asset allocation model 48 c until the triggerevent 50 b corresponding to the first subscriber's 41st birthday, whenthe assets will be rebalanced according to the asset allocation model 48d indicated by predetermined investment allocation path 44 a. The firstsubscriber's assets then will remain invested according to the assetallocation model 48 d until the trigger event 50 d corresponding to thefirst subscriber's 61st birthday, when the first subscriber's assetswill be rebalanced according to the asset allocation model 48 eindicated by the predetermined investment allocation path 44 a at thetrigger event 50 d. Thus, the first subscriber's assets will berebalanced according to predetermined asset allocation models along thepredetermined path 44 a.

As a further example, the data 49 indicative of the risk tolerance 52associated with a second subscriber may indicate a moderate value of therisk tolerance 52. Accordingly, at the step 54, the computerized method40 would select the predetermined path 44 e for the second subscriber'sassets, as shown in FIGS. 3 and 4. At the trigger event 50 acorresponding to the second subscriber's 31st birthday, thepredetermined path 44 e would indicate the asset allocation model 48 b.The asset allocation model 48 b provides a “moderate aggressive”investment profile having twenty one percent (21%) of assets invested insmall value equities (SV), fourteen percent (14%) of assets invested ininternational equities (IntE), twelve percent (12%) of assets investedin large value equities (LV), twelve percent (12%) of assets invested insmall growth equities (SG), and the remainder of assets invested in amixture of bonds and equities. The second subscriber's assets will berebalanced, at the trigger events corresponding to the secondsubscriber's 41st, 61st, and 65th birthdays, according to thecorresponding asset allocation models along the predetermined path 44 e.

Although specific percentages are described for each of the exemplaryasset allocation models, the scope of the present invention is notlimited to the asset allocation models as described.

Referring to FIG. 6, in an embodiment of the present invention, thecomputerized method 40 may further include a step 69 of scheduling anotification 77 to be delivered to the subscriber before each of theplurality of trigger events 50 a-50 e. The server 12 may be configuredto store the plurality of notifications 77 in the database 28 of thedata storage device 22, or in the other computer-readable medium. Theserver 12 may also be configured to retrieve the trigger events 50 a-50e and the notifications 77 from the database 28 or from the othercomputer-readable medium so as to perform a step 76 of directingdelivery to the subscriber of the notification 77 corresponding to anupcoming trigger event 50. Each of the plurality of notifications 77 mayinclude a description of a plurality of responses. Each of thenotifications 77 may also include descriptions of the current risktolerance 52, of the current asset allocation model, and of a subsequentasset allocation model, corresponding to the upcoming trigger event 50,selected from the predetermined path for the subscriber's assets.

For example, before the first subscriber's 41st birthday, the server 12would perform a step 76 of directing delivery to the first subscriber ofthe notification 77 corresponding to the first subscriber's 41stbirthday. The notification 77 would include a description of the firstsubscriber's risk tolerance 52 as “low”, a description of the currentasset allocation model 48 c, and a description of the asset allocationmodel 48 d, according to which the subscriber's assets would berebalanced at the subscriber's 41st birthday.

As a further example, the step 76 could be performed in response toreceipt of data 49 indicative of a possible change in the subscriber'srisk tolerance 52. For example, the server 12 could be configured tomonitor information related to market events, political events, or othernews. In particular, the server 12 could monitor financial newsinformation such as stock index valuations while also monitoring localnews information such as engagement, birth, or wedding announcements aswell as obituaries or foreclosure notices. Various means for monitoringsuch information sources are known in related fields of art.Additionally, the server 12 could monitor changes in the subscriber'spayroll information, including benefits elections, or changes to thesubscriber's tax withholding information, such as the subscriber'sincome, list of dependents, or marital status. On receipt of informationpotentially relevant to the subscriber's risk tolerance 52, the server12 could perform the step 76. Potentially relevant information could beidentified based on instructions previously provided by the subscriber,or based on rules extrapolated from the subscriber's age and other data49 indicative of the subscriber's risk tolerance 52.

The computerized method 40 may further include a step 78 of receiving atthe server 12 a response to the notification 77. The notification 77could include a description of several possible responses: a “DoNothing” response 790; an “Opt Out of the Path” response 792; and a“Change Risk Tolerance” response 791. If the server 12 does not receivea response at the step 78, or if the server 12 receives the “Do Nothing”response 790, then the computerized method 40 will continue according tothe predetermined path selected for the subscriber's assets. Thus, thesubscriber's assets will be rebalanced at the next trigger eventaccording to the asset allocation model indicated by the predeterminedpath for the subscriber's assets.

If the server 12 at step 78 receives the “Opt Out of the Path” response792, then the computerized method 40 will leave the subscriber's assetsin the current asset allocation model, will discontinue rebalancingsubscriber assets according to the predetermined path, and will directall future contributions to the current asset allocation model. Thus,the subscriber's assets will remain in the current asset allocationmodel until the subscriber initiates a rebalancing or a transfer ofassets out of the plan or account.

If the server 12 at step 78 receives the “Change Risk Tolerance”response 791, including updated values for the data 49 indicative of anew risk tolerance, then the step 54 will be performed to select analternate predetermined path for the subscriber, based on the updatedvalues of the data 49. For example, before the first subscriber's 41stbirthday he or she might experience career advancement that would changethe data 49 indicative of risk tolerance 52. Then, on delivery of thenotification 77 at step 76, the first subscriber might provide the“Change Risk Tolerance” response 791, along with updated values for thedata 49 indicative of a higher value of the risk tolerance 52.Accordingly, at the step 54, the computerized method 40 would select forthe first subscriber an alternative predetermined path 44 f,corresponding to the higher value of the risk tolerance 52, as shown inFIGS. 4 and 6. The selection of an alternative predetermined path, basedon the “Change Risk Tolerance” response 791, would define a branch pointfor the first subscriber. Thus, the server would switch the subscriber'sassets to the alternate predetermined path.

Subsequently, the server would direct investment of the subscriber'sassets according to the alternate asset allocation models correspondingto the trigger events on the alternate predetermined path. This mightresult in a different asset allocation model becoming effective for thecurrent trigger event, as well as for future trigger events. For thefirst subscriber, branching from the predetermined path 44 c toalternate predetermined path 44 f would result in the first subscriber'sassets immediately being rebalanced to asset allocation model 48 b. Thefirst subscriber's assets then would proceed along the alternatepredetermined path 44 f, remaining in asset allocation model 48 b untilthe trigger event 50 c corresponding to the first subscriber's 51stbirthday, and then being rebalanced to asset allocation model 48 c.

A branch point also could occur at any other time, when the subscriberinitiates selection of an alternate predetermined path by submitting newvalues of the data 49 indicative of a change to the risk tolerance 52.Similarly, the subscriber may “Opt Out of the Path” at any time.

Referring to FIG. 7, another embodiment of the computerized method 40may also include a step 80 of scheduling a plurality of pre-scheduledtransactions 82. The presecheduled transactions 82 may be scheduled bythe server 12, and may be stored by the server 12 in the database 28 ofthe data storage device 22, or on the other computer-readable medium.The computerized method 40 also may include a step 86, preferablyperformed by the server 12, of directing performance of a pre-scheduledtransaction selected from the plurality of pre-scheduled transactions82.

The pre-scheduled transactions 82 could include various actions andevents, including financial transactions, such as: increases ordecreases of investment contributions; loan requests or loan payments;or asset withdrawals to fund major expenses. For example, the subscribermight know that they would have an increase in available assets at somefuture date (completion of a mortgage or car payment; end of collegebills) and may want to pre-set an increase in their investmentcontributions. The subscriber could request a contribution increase forthe future date, using an internet browser, a telephone call, a letteror an e-mail, or any other mode of communication. The subscriber wouldbe notified of each pre-scheduled transaction before the scheduled date,and would be able to respond to the notification to change or opt-out ofthe transaction. Almost any type of transaction could be pre-scheduledin this manner. In addition to contribution increases or decreases, loanrequests, rollovers, and transfers could all be pre-scheduled to meet asubscriber's future anticipated needs.

Pre-scheduled transactions could be used either in retirement planaccounts or in non-retirement plan accounts, such as individualannuities or life insurance. Transfers could be scheduled ahead within avariable annuity account, as could life insurance premium payments.

This capability would also be applicable to the predetermined investmentallocation paths. The subscriber could use pre-scheduled transactions toadjust the risk tolerance so as to reconfigure the predeterminedinvestment allocation paths and select an alternate predetermined path.Instead of configuring the predetermined investment allocation pathsbased on age and risk tolerance alone, a custom predetermined path couldbe developed, as shown in FIG. 8, based upon pre-scheduled transactionscorresponding to anticipated life events. Marriage, major investments,children's births, and college bills could all have an impact on thefinancial needs of the subscriber, resulting in a desire to reallocatethe retirement plan investment strategy. For example, if the subscriberknew that they would be buying a home in the near future, and expectedto take a loan from their retirement plan to help fund the homepurchase, the subscriber might want to pre-schedule a branch point sothat their custom predetermined path indicates an asset allocation modelwith a less risky investment profile. Thus, the subscriber would be morelikely to have access to the subscriber's assets for funding the loan.The subscriber might also want to pre-schedule a branch point after theintended loan request, so as to return the assets to an allocation modelwith a riskier investment profile.

Conversely, the subscriber might be willing to take on more risk aftermarrying, under the assumption that a larger retirement account would beneeded, or because having two wage earners would support higherinvestment risk. In this scenario, the custom predetermined path couldbe designed to indicate a more aggressive asset allocation modelfollowing the anticipated wedding date. Another option would be todesign a custom predetermined path where the risk tolerance increaseswith subscriber age, based on the assumption that the subscriber'ssalary also would increase with age.

One advantage of the present invention is that the predeterminedinvestment allocation paths allow automatic rebalancing of thesubscriber's assets in accordance with a set of asset allocation modelsat a pre-set number of trigger events. Such an automatic periodicrebalancing of assets alleviates the problem of a subscriber failing toappropriately shift his or her assets. The subscriber's assets willautomatically be allocated according to a model appropriate to thesubscriber's age and risk tolerance, so that assets are not exposed toundue risk of loss or left sitting to earn suboptimal returns.

Another advantage of the present invention is that it enables thesubscriber to know, when he or she first enrolls his or her assets inthe predetermined path, exactly how his or her assets will be allocatedover time, based on the predetermined path selected.

A further advantage of the present invention is that it enables thesubscriber to configure a custom predetermined path, taking into accountanticipated life events and financial needs.

Another advantage of the present invention is that it notifies thesubscriber of upcoming trigger events along the predetermined path,thereby allowing the subscriber to take various actions ahead of thetrigger event.

Another advantage of the present invention is that it enables thesubscriber to provide new data indicative of a change in his or her risktolerance, thereby switching from the predetermined path to an alternatepredetermined path at various branch points.

Another advantage of the present invention is that it enables thesubscriber to pre-schedule transactions so that the subscriber's assetsare made available for use at times of anticipated need, or areaugmented during times of anticipated ease.

Although this invention has been shown and described with respect to thedetailed embodiments thereof, it will be understood by those skilled inthe art that various changes in form and detail thereof may be madewithout departing from the spirit and the scope of the invention. Anexample would be to store the data indicative of the subscriber risktolerance not in the database, but in the other computer-readablemedium. Another example would be to schedule trigger events or branchpoints not at subscriber birthdays, but as a function of time remaininguntil the subscriber's planned retirement date. A third example would befor the subscriber to design a custom predetermined investmentallocation path, wherein the asset allocation models are arrangedaccording to the subscriber's forecast of risk tolerance.

The present invention has been described with particular reference to aretirement investment account or plan, but the details of the presentinvention are equally applicable to the management of at least thefollowing: “529” or higher education savings plans; variable annuities;variable life insurance plans or contracts; and/or retail brokerageaccounts.

1. A computerized method for allocating financial assets related to asubscriber, the method comprising the steps of: configuring, in aserver, a plurality of predetermined investment allocation paths, eachinvestment allocation path including a plurality of pre-selected triggerevents, the trigger events comprising one or more of subscriber age orlife events of the subscriber, and a plurality of asset allocationmodels, each of the plurality of asset allocation models having aninvestment profile corresponding to one of the plurality of pre-selectedtrigger events; receiving data indicative of an initial risk toleranceassociated with a subscriber; storing the data in a database incommunication with the server; processing, in the server, the storeddata to select one of said predetermined investment allocation pathscorresponding to the initial risk tolerance, and responsive to receiptof data indicative of occurrence of one of the plurality of pre-selectedtrigger events, determining by the server data indicative of arebalancing of the subscriber assets from one asset allocation model toanother asset allocation model in accordance with the selectedpredetermined investment allocation path, and, based on informationrelevant to the subscriber's risk tolerance, receiving data indicativeof a different risk tolerance associated with the subscriber, andselecting a different one of the predetermined investment allocationpaths corresponding to the different risk tolerance.
 2. The methodaccording to claim 1, wherein the subscriber assets are invested in aretirement plan.
 3. The method according to claim 1, further comprisinga step of scheduling a pre-scheduled transaction.
 4. The methodaccording to claim 3, wherein the transaction is an increase ofinvestment contribution.
 5. The method according to claim 3, wherein thetransaction is a decrease of investment contribution.
 6. The methodaccording to claim 1, further comprising a step of directing delivery tothe subscriber of a notification preceding each of the plurality oftrigger events, wherein the notification includes a description of anasset allocation model selected from the predetermined investmentallocation path based on the corresponding trigger event.
 7. The methodaccording to claim 1, further comprising a step of directing delivery tothe subscriber of a notification based on receipt of data indicative ofa possible change in the subscriber's risk tolerance, wherein thenotification includes a description of an asset allocation modelselected from the predetermined investment allocation path based on atrigger event.
 8. The method according to claim 6, wherein thenotification includes a description of each of a plurality of potentialresponses.
 9. The method according to claim 8, wherein the plurality ofresponses includes a change response, wherein an alternate predeterminedpath is selected, the alternate predetermined path having subscriberassets allocated according to alternate asset allocation modelscorresponding to the trigger events.
 10. The method according to claim8, wherein the plurality of subscriber responses includes a defaultresponse, wherein the subscriber assets are allocated according to thecurrent predetermined path.
 11. The method according to claim 1, whereinthe trigger events comprise the subscriber's age.
 12. The methodaccording to claim 1, wherein the trigger events comprise thesubscriber's life events.
 13. The method of claim 1, wherein, responsiveto receipt of data indicative of a subscriber instruction to switch fromthe selected predetermined investment allocation path to another of theplurality of investment allocation paths, providing by the server anoutput signal having data indicative of switching the subscriber betweenthe plurality of predetermined investment allocation paths.
 14. Themethod according to claim 13, wherein the branch point comprises asubscriber's life event.
 15. The method according to claim 1, whereinconfiguring the plurality of predetermined investment allocation pathsalso includes receiving a subscriber list of custom trigger events. 16.The method according to claim 13 wherein the branch point is initiatedby the subscriber.
 17. The method according to claim 13, wherein theserver switches the subscriber's assets to a different predeterminedinvestment allocation path at the branch point.
 18. The method accordingto claim 13, wherein the subscriber selects to switch assets to adifferent predetermined investment allocation path at the branch point.19. A system for allocating subscriber assets comprising: a data storagedevice for storing a subscriber's initial risk tolerance, a plurality ofpredetermined investment allocation paths, each of the predeterminedinvestment allocation paths having a plurality of pre-selected triggerevents, the trigger events comprising one or more of subscriber age orlife events of the subscriber, and a plurality of asset allocationmodels, one of the plurality of asset allocation models corresponding toeach of the pre-selected trigger events, and associations between aplurality of predetermined risk tolerances and the predeterminedinvestment allocation paths; and a server coupled to the data storagedevice, wherein the server is configured to retrieve the subscriber'sinitial risk tolerance and to select one of the predetermined investmentallocation paths based on the subscriber's initial risk tolerance,responsive to receipt of data indicative of occurrence of one of thepre-selected trigger events, change the asset allocation model to theasset allocation model corresponding, in accordance with the selectedinvestment allocation path, to the received pre-selected trigger event,and, responsive to receipt of data, provided based on informationrelevant to the subscriber's risk tolerance, indicative of a differentrisk tolerance associated with the subscriber at a branch point, switchthe subscriber to a different one of the plurality of predeterminedinvestment allocation paths corresponding to the different risktolerance.
 20. The system according to claim 19, wherein the server isfurther configured to retrieve an asset allocation model based on thepredetermined investment allocation path and a current trigger event.21. The system according to claim 19, wherein the server is furtherconfigured to direct delivery to the subscriber of a notificationpreceding each of the plurality of trigger events, wherein thenotification preceding each of the plurality of trigger events includesa description of an asset allocation model selected from thepredetermined investment allocation path based on the correspondingtrigger event.
 22. The system according to claim 19, wherein the serveris further configured to delivery to the subscriber of a notificationbased on receipt of data indicative of a possible change in thesubscriber's risk tolerance, wherein the notification includes adescription of an asset allocation model selected from the predeterminedinvestment allocation path based on a trigger event.
 23. The systemaccording to claim 21, wherein the notification includes a descriptionof each of a plurality of potential responses.
 24. The system accordingto claim 23, wherein the plurality of responses includes a changeresponse, wherein an alternate predetermined path is selected, thealternate predetermined path having subscriber assets allocatedaccording to alternate asset allocation models corresponding to thetrigger events.
 25. The system according to claim 24, wherein the changeresponse includes updated data indicative of a subsequent risk toleranceassociated with the subscriber.
 26. A non-transitory computer-readablemedium on which has been recorded a computer program, which whenexecuted by a server, performs a method for allocating financial assetsrelated to a subscriber, the method comprising the steps of:configuring, in a server, a plurality of predetermined investmentallocation paths, each investment allocation path including a pluralityof pre-selected trigger events, the trigger events comprising one ormore of subscriber age or life events of the subscriber, and a pluralityof asset allocation models, each of the plurality of asset allocationmodels having an investment profile corresponding to one of theplurality of pre-selected trigger events; receiving data indicative ofan initial risk tolerance associated with a subscriber; storing the datain a database in communication with the server; and processing thestored data to select one of the predetermined investment allocationpaths corresponding to the initial risk tolerance, responsive to receiptof data indicative of occurrence of one of the plurality of pre-selectedtrigger events, determining data indicative of a rebalancing ofrebalancing of the subscriber assets from one asset allocation model toanother asset allocation model in accordance with the selectedpredetermined investment allocation path, receiving, based oninformation relevant to the subscriber's risk tolerance, at a branchpoint, data indicative of a different risk tolerance associated with thesubscriber, and providing an output signal having data indicative ofswitching the subscriber from the selected predetermined investmentallocation path to another of the plurality of predetermined investmentallocation paths corresponding to the different risk tolerance.
 27. Thecomputer-readable medium according to claim 26, wherein the computerprogram, when executed by the server, performs a method furthercomprising a step of scheduling a pre-scheduled transaction.
 28. Thecomputer-readable medium according to claim 26, wherein configuring aplurality of predetermined investment allocation paths also includesreceiving a list of custom trigger events.
 29. The computer-readablemedium according to claim 26, wherein the computer program, whenexecuted by the server, performs a method further comprising a step ofdirecting delivery to the subscriber of a notification preceding each ofthe plurality of trigger events, wherein the notification preceding eachof the plurality of trigger events includes a description of an assetallocation model selected from the predetermined investment allocationpath based on the corresponding trigger event.
 30. The computer-readablemedium according to claim 26, wherein the computer program, whenexecuted by the server, performs a method further comprising a step ofdirecting delivery to the subscriber of a notification based on receiptof data indicative of a possible change in the subscriber's risktolerance, wherein the notification includes a description of an assetallocation model selected from the predetermined investment allocationpath based on a trigger event.
 31. The computer-readable mediumaccording to claim 29, wherein each of the plurality of subscribernotifications includes a description of each of a plurality ofresponses.
 32. The computer-readable medium according to claim 30,wherein the plurality of responses includes a change response whereinthe server receives updated data indicative of a subsequent risktolerance associated with the subscriber.
 33. The method of claim 11,wherein the trigger events of at least one of the investment allocationpaths further comprise a plurality of pre-selected ages of thesubscriber.
 34. The method of claim 33, wherein the trigger events ofthe at least one of the investment allocation paths further comprise atleast one life event of the subscriber.
 35. The method of claim 33,wherein the trigger events of each of the investment allocation pathsfurther comprise a plurality of pre-selected ages of the subscriber. 36.The system of claim 19, wherein the trigger events of at least one ofthe investment allocation paths comprise a plurality of pre-selectedages of the subscriber.
 37. The system of claim 36, wherein the triggerevents of the at least one of the investment allocation paths furthercomprise at least one life event of the subscriber.
 38. The system ofclaim 37, wherein the life event comprises retirement of the subscriber.39. The method according to claim 13, wherein the branch point comprisesthe subscriber's age.
 40. The computerized method of claim 1, whereinthe information relevant to the subscriber's risk tolerance comprisesthe age of the subscriber.
 41. The system of claim 19, wherein theinformation relevant to the subscriber's risk tolerance comprises atrigger event.
 42. The system of claim 19, wherein the informationrelevant to the subscriber's risk tolerance comprises the subscriber'sage.
 43. The system of claim 19, wherein the information relevant to thesubscriber's risk tolerance comprises one or more of changes in thesubscriber's marital status, list of dependents or income.
 44. Thecomputer-readable medium according to claim 26, wherein the informationrelevant to the subscriber's risk tolerance comprises an age of thesubscriber.